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Hello, I need some help with this question. Using the appropriate table from the Chapter 12 Appendices, record the present-value factor at 10% for each

Hello, I need some help with this question.

Using the appropriate table from the Chapter 12 Appendices, record the present-value factor at 10% for each year and compute the present-value cost of owning and the present value of leasing. Which alternative is more desirable at this interest rate? Do you think your answer would change if the interest rate was 6% instead of 10%?

Cost of Owning: Anywhere ClinicComparative Present Value

For-Profit Cost of Owning:

Year 0

Year 1

Year 2

Year 3

Year 4

Year 5

Net Cash Flow

(48,750)

2,500

2,500

2,500

2,500

5,000

Present-value factor

Present-value answers =

Present-value cost of owning =

Cost of Leasing: Anywhere ClinicComparative Present Value

Line#

For-Profit Cost of Leasing:

Year 0

Year 1

Year 2

Year 3

Year 4

Year 5

19

Net Cash Flow

(8,250)

(8,250)

(8,250)

(8,250)

(8,250)

-

20

Present-value factor

21

Present-value answers =

22

Present-value cost of leasing =

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